EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 5 Industries Of the 848 EGCs, based on SIC codes, 5 approximately 23.5% were pharmaceutical preparations companies, approximately 8.0% were prepackaged software companies, approximately 9.9% were “blank check” companies, and approximately 5.3% were biological products companies. Figure 6 : N=848. Foreign Private Issuers The largest percentage of FPI EGCs, approximately 36.0%, were companies incorporated in the Cayman Islands. Approximately 7.5% were companies incorporated in the British Virgin Islands and approximately 5.0% were companies incorporated in Bermuda. These jurisdictions are welcoming to foreign companies because they often offer favorable tax and other attributes unrelated to the underlying business operations of the issuer. Based on the sample surveyed, 43 of the 72 Cayman Islands issuers were based in China. The next largest percentage of FPI EGCs, or approximately 11.0%, were issuers incorporated in Israel, with their primary operations in Israel. 5 A registration statement filed with the SEC must identify the issuer’s primary “Standard Industrial Classification,” or SIC code, which is a four-digit number that classifies a company by its industry. 199 68 84 45 28 24 20 380 Industries by SIC Code Pharmaceutical Preparations Prepackaged Software "Blank Check" Companies Biological Products Surgical & Medical Instruments/Apparatus State Commercial Banks Computer Programming/Data Processing Other